AUD/USD Technical Analysis October 27, 2011

AUD/USD fell and then rose on the session for Wednesday. The resulting candle was a hammer, and it looks like the Aussie will be supported after all. The 1.05 level above should be resistive again, so we feel that the initial bounce from this candle might be somewhat limited. The daily close over that level is what we want to see in order to buy this pair. Until then, we will be watching. A breaking of the lows of the Wednesday hammer would be a massively bearish signal, and would have us aggressively short of this pair.

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